] DriveMojo.com » Auto industry to press Congress for $50B in loans

Auto industry to press Congress for $50B in loans

The big carmakers will be begging Congress for a $50B loan, this immediately after the Government takes over control of Fannie Mae and Freddie Mac, the two mortgage giants who account for about 9 mortgages out of 10 in the USA.

Read more about the carmakers plea:

Auto industry allies hope to secure up to $50 billion in government loans this month that would pay to modernize plants and help struggling car makers build more fuel-efficient vehicles.

With Congress returning this coming week from its summer break, the industry plans an aggressive lobbying campaign for the low-interest loans. The situation is growing dire after months of tumbling sales, high gasoline prices and consumers’ abandoning profitable trucks and sport utility vehicles.

Lawmakers authorized $25 billion in loans in last year’s energy bill to help the companies build fuel-efficient vehicles such as hybrids and electric vehicles. With credit tight, automakers and suppliers now want lawmakers to come up with the money for the program — and expand the pool of money available to $50 billion over three years.

Read the whole thing here.

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Posted By: froosh | Sep 7th

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